A new turn toward Bitcoin investment sent GameStop shares sliding on Thursday, as the company announced a $1.75 billion convertible notes offering that could fund further purchases of the cryptocurrency.

Following Strategy

The move, which echoes a strategy adopted by MicroStrategy, has triggered skepticism among investors amid broader concerns about GameStop’s weakening core business.

The company stated that proceeds from the offering would support general corporate purposes, which now include potential crypto investments under its revised investment policy.

“GameStop Corp. today announced that it intends to offer, subject to market conditions and other factors, $1.75 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2032 in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended,” the company announced.

That policy saw its first major deployment last month when GameStop acquired 4,710 bitcoins, valued at over $500 million. The market response was immediate and sharp. Shares of GameStop fell over 15% in premarket trading following the news.

That drop came just a day after the stock declined 6% on weaker-than-expected quarterly earnings. GameStop reported a 17% year-over-year revenue decline to $732.4 million in the fiscal first quarter, highlighting the ongoing shift in consumer behavior toward online gaming and digital distribution, CNBC reported.

Aggressive Accumulation of Bitcoin

GameStop appears to be taking cues from MicroStrategy, which was recently renamed Strategy. This company has become known for its aggressive accumulation of Bitcoin, financed in part through convertible debt.

Read more: Strategy Snaps Up $427 Million in Bitcoin as Experts Predict BTC Price to Hit $140,000 by September

That approach led to large gains in Strategy’s share price during Bitcoin bull runs, though the stock has also experienced extreme volatility. Last month’s Bitcoin rally past the $110,000 mark caused a fresh round of buying from Strategy. But even as the company doubled down on crypto, its stock also tumbled in the face of legal trouble and insider sales.

Source: Strategy

Strategy disclosed the new purchase of 4,020 Bitcoin between May 19 and 23, totaling $427.1 million. The average price per coin was $106,237, placing the buy just ahead of Bitcoin’s all-time high of over $110,000 on May 22. The move continued Saylor’s long-standing approach of buying Bitcoin regardless of market peaks.

Source: Finance Magnates